Aviation Capital Group (ACG) recorded $589 million in revenues for the first half of 2024, up from $554.1 million in the same period last year. Operating lease revenue was up from $490.3 million last year to $535.7 million in 2024's first half. Its gain on sale of flight equipment was $20.5 million, up from $2.3 million last year.
Total expenses for the period were $535.7 million, up from $509.2 million last year. The lessor's net income for the quarter was $48.5 million, up slightly from its $44.6 million profit last year in the same period.
As of June 30, 2024, the company's assets were valued at $13.2bn. Total liabilities and equity at the end of the first half were $13.2bn. Additionally, it held $76.3 million in cash and cash equivalents by the period's end.
The company added that it was due $535.3 million in lease rentals under operating leases for the remainder of the year, as well as $1bn next year. In total, it is is due $6.9bn. In addition, it is due $103.3 million under future minimum lease payments under finance leases.
The company further clarified that - after commencing legal proceedings in California against its insurance providers in connection to losses related to the Russia and Ukraine conflict - it has not yet recognised any claim receivables as of the end of the first half of 2024. It said it intends to ""continue to pursue remedies for the losses incurred by us"". The proceedings in California sought damages for excess of $700 million.
As of June 30, 2024, the company's net book value was at $11.7bn - including flight equipment held for lease, net and assets held for sale. Its 483 aircraft portfolio consisted of 315 owned aircraft, 56 managed, 112 committed. The group also ordered 35 MAX aircraft in July 2024. The weighted average of its owned portfolio is 6.1 years, while the weighted average remaining lease term is seven years.
As of the end of the quarter, it held $3.6bn in liquidity with a net to equity ratio of 2.5 to 1.
Aviation Capital Group reports half year results
